Follow the author of this article

Follow the topics within this article

UK motor insurers, who were staring down the barrel of £3.2bn in combined losses only a few months ago because of controversial changes to the way personal injury payouts are calculated, are likely to escape with much a much smaller hit than originally feared, according to figures from consultancy EY.

Earlier this year, the Government proposed changes to the so-called Ogden rate, which is used to calculate how much insurers pay out to people who have been severely injured in accidents. The Government's change of heart was the result of a furious backlash from insurers who claimed that the original rate was far too generous.

The sector said that the rate cut in February would hammer their profits. ...